By Christopher Engel, Krieg DeVault LLP
One of the most extensive and complicated changes to the Internal Revenue Code from the Tax Cuts and Jobs Act of 2017 (“TCJA”) came with respect to the treatment of pass-through entities. The TCJA provides for a new twenty percent (20%) deduction for the “qualified business income” of certain pass-through entities such as sole proprietorships, partnerships, and subchapter S corporations. Of course, the new deduction is subject to various exemptions and conditions depending on the business.
To best advise clients on this new provision and how it may impact their business, follow Bloomberg’s Tax Reform Watch to keep up with the most recent developments as more guidance from the Treasury Department is released.
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